A cyberattack has brought down one of Germany’s largest phone insurance and repair networks, forcing the once-thriving Einhaus Group into insolvency. The company, which at its peak generated around €70 million in annual revenue and partnered with big names such as Deutsche Telekom, Cyberport, and 1&1, has been unable to recover from the financial and operational chaos that followed the attack.
The Day Everything Stopped
In March 2023, founder Wilhelm Einhaus arrived at the company’s offices to an unsettling sight. Every printer had churned out the same note: “We’ve hacked you. All further information can be found on the dark web.” Investigations revealed the work of the hacking group known as “Royal.” They had infiltrated the company’s network, encrypting all of its core systems, the very tools needed to process claims, manage customer data, and run daily operations.
Without these systems, business ground to a halt. The hackers demanded around $230,000 in Bitcoin to unlock the computers. Facing immediate and heavy losses, and with no way to operate manually at the same scale, Einhaus Group reportedly agreed to pay. The financial damage, however, was already severe, estimated in the multi-million-euro range. Police were brought in early, but the payment decision was made to avoid even greater harm.
Desperate Measures to Stay Afloat
Before the attack, the company employed roughly 170 people. Within months, more than 100 positions were cut, leaving only eight employees to handle all ongoing work. With so few staff, much of the processing had to be done by hand, slowing operations dramatically.
To raise funds, the company sold its headquarters and liquidated various investments. These moves bought time but did not restore the business to its former state.
Seized Ransom, But No Relief
In a twist, German authorities later apprehended three suspects believed to be linked to the “Royal” group. They also seized cryptocurrency valued in the high six-figure euro range, suspected to be connected to the ransom payments.
However, Einhaus Group has not received its money back. Prosecutors have refused to release the seized funds until investigations are complete — a process that could take years. Other ransomware victims in Germany are in the same position, with no guarantee they will ever recover the full amount.
Final Stages of the Collapse
Three separate companies tied to the Einhaus Group have now formally entered insolvency proceedings. While liquidation is a strong possibility, founder Wilhelm Einhaus, now 72, insists he has no plans to retire. If the business is dissolved, he says he will start again from scratch.
The Einhaus case is not unique. Just recently, the UK’s 158-year-old transport company Knights of Old collapsed after a ransomware attack by a group known as “Akira,” leaving 700 people jobless. Cyberattacks are increasingly proving fatal to established businesses not just through stolen data, but by dismantling the very infrastructure needed to survive.
A new report from IBM’s X-Force 2025 Threat Intelligence Index shows that cybercriminals are changing their tactics. Instead of mainly using ransomware to lock systems, more hackers are now trying to quietly steal login information. IBM studied over 150 billion security events each day from 130+ countries and found that infostealers, a type of malware sent through emails to steal data, rose by 84% in 2024 compared to 2023.
This change means that instead of damaging systems right away, attackers are sneaking into networks to steal passwords and other sensitive information. Mark Hughes, a cybersecurity leader at IBM, said attackers are finding ways into complex cloud systems without making a mess. He also advised businesses to stop relying on basic protection methods. Instead, companies should improve how they manage passwords, fix weaknesses in multi-factor authentication, and actively search for hidden threats before any damage happens.
Critical industries such as energy, healthcare, and transportation were the main targets in the past year. About 70% of the incidents IBM helped handle involved critical infrastructure. In around 25% of these cases, attackers got in by taking advantage of known flaws in systems that had not been fixed. Many hackers now prefer stealing important data instead of locking it with ransomware. Data theft was the method in 18% of cases, while encryption-based attacks made up only 11%.
The study also found that Asia and North America were attacked the most, together making up nearly 60% of global incidents. Asia alone saw 34% of the attacks, and North America had 24%. Manufacturing businesses remained the top industry targeted for the fourth year in a row because even short outages can seriously hurt their operations.
Emerging threats related to artificial intelligence (AI) were also discussed. No major attacks on AI systems happened in 2024, but experts found some early signs of possible risks. For example, a serious security gap was found in a software framework used to create AI agents. As AI technology spreads, hackers are likely to build new tools to attack these systems, making it very important to secure AI pipelines early.
Another major concern is the slow pace of fixing vulnerabilities in many companies. IBM found that many Red Hat Enterprise Linux users had not updated their systems properly, leaving them open to attacks. Also, ransomware groups like Akira, Lockbit, Clop, and RansomHub have evolved to target both Windows and Linux systems.
Lastly, phishing attacks that deliver infostealers increased by 180% in 2024 compared to the year before. Even though ransomware still accounted for 28% of malware cases, the overall number of ransomware incidents fell. Cybercriminals are clearly moving towards quieter methods that focus on stealing identities rather than locking down systems.